Connect with us

Published

on

China’s surging electric vehicles (EVs) ownership – now exceeding 25.5m – is opening the door to a new technology that can help to enhance the flexibility of electricity supply.

EVs connected via “vehicle-to-grid” (V2G) technology can function as “batteries on wheels” that charge and discharge according to the needs of the wider electricity system.

The idea of turning EVs into “power banks” has already sparked both business and political interest in China.

How can V2G help balance the grid?

V2G involves two-way electric charging that allows EVs to act as flexible power sources, which can potentially help with the electricity supply from the grid.

In China, EVs with bidirectional batteries, when plugged into V2G-capable charging stations, are able to sell their stored electricity back to the grid, once owners complete registration on WeChat.

The country is currently trialling the technology in nine “pilot cities”, including Shanghai, as well as Guangzhou and Shenzhen, where EV operators are able to sell electricity to the grid, according to a V2G policy announced in April.

The policy is the world’s first nationwide pilot that aims to roll out V2G at scale in major cities. Payments – either in cash or coupons – are provided to EV owners to offset their charging costs in industrial parks, ports, as well as malls and residential compounds.

This is, however, not the first top-level policy framework for V2G in China. In late 2023, the National Reform and Development Commission (NDRC) pledged to establish a system of V2G technical standards by 2025 and to test its potential.

Dr Muyi Yang, senior electricity analyst at thinktank Ember, tells Carbon Brief that the April policy sends a “signal that China’s energy transition is entering a deeper phase”.

He adds that this new policy marks a major step in integrating EVs with the power grid, considering that China is rapidly enlarging its renewable capacity. However, the country’s current grid system sometimes struggles to take in all of the electricity being generated.

“China’s wind and solar capacity is becoming too large for the current grid to handle,” Yang tells Carbon Brief. “With their [combined] capacity now exceeding that of coal power, the grid flexibility has become increasingly insufficient.”

A fleet of grid-connected EVs could help China achieve its broader plan to restructure its power sector towards a “new power system” that aims to be more flexible and responsive to power volatility, says Yang.

Equipped with V2G, EVs could charge up their batteries or sell stored electricity according to owners’ preferences and the overall needs of the power system.

This provides the means and potential for the grid to integrate renewable energy more flexibly, says Zhou Xiaohang, China clean-power project manager at the US-registered Natural Resource Defense Council in Beijing.

She tells Carbon Brief that, in the long run, V2G can help to address the curtailment issue for renewable energy, which is often referred to as the “Xiaona” problem in China.

What is the current state of V2G adoption?

Currently, V2G has not been widely deployed in China. The cost of V2G infrastructure installation remains high.

Zhou says the success of large-scale roll out of V2G depends on whether there are enough EVs equipped with the bidirectional batteries and able to be plugged into V2G-capable charging stations.

Data company China Automotive Technology and Research Centre says that the share of new car sales made up by “new-energy vehicles” (NEVs) – mostly EVs – is more than 40% in almost all nine pilot cities tapped to develop V2G.

Even though not all EVs support V2G, the large number of EVs on the road suggests strong potential to build it into a profitable commercial model.

Zhou says that since China “already [has] enough EVs on the road to make [V2G] possible”, there are “no major technical barriers to scale up V2G interaction”.

Meanwhile, popular car brands such as BYD and Nio have released new EV models with V2G features and many more are actively testing and preparing for two-way electric charging.

In a June podcast, Anders Hove, senior research fellow at the Oxford Institute for Energy Studies, says carmakers are pushing for faster progress. He explains:

“My understanding is that the Chinese EV and battery makers are communicating with grid companies and power-sector regulators that the technology is now ready. They would like there to be additional regulations to enable this to start happening at scale.”

There are 30 such demonstration projects going on at the moment. The results of those projects will be collected by the NDRC and the National Energy Administration for evaluating future scaleup.

Shenzhen, for example, received more than 70,000 kilowatt hours (kWh) of electricity from about 2,500 EVs in June.

V2G services have the potential to become popular nationwide, says Yang, partly because it could also become a source of income for EV owners and businesses.

According to the Paper, a Shanghai-based news outlet, an EV owner could earn roughly 500 yuan ($70) in electricity charging vouchers by discharging 460kWh in a month.

In Shenzhen, a logistics company with 30 EVs is estimated to save up to 4,500 yuan ($631) a month by joining the V2G programme, says China Automotive News, a state-sponsored media outlet.

What are the challenges in expansion?

Regional governments are working to introduce more profitable pricing systems to boost user participation.

Guangdong province, in south China, has launched a V2G pricing plan that is “appealing” enough for EV owners to see a profit from participating in the scheme, according to Zhou, which will help drive wider adoption.

However, there will need to be a deeper level of power-sector reform for V2G to become fully commercialised, says Shen Xinyi, researcher at Centre for Research on Energy and Clean Air (CREA).

Currently, a large share of China’s electricity is still traded through long-term power contracts, which could limit incentives for individual EV owners to engage in power trading.

Shen tells Carbon Brief:

“Flexible systems like V2G and distributed solar power need a well-developed spot market and experienced, professional players such as power retailers to truly thrive…I think it still needs a lot of patience to see how theory turns into practice.”

It could take years before V2G reaches a significant level of adoption, due to the uncertainty of whether it can be turned into a viable business model, says Shen.

According to Zhou, whether V2G can be rolled out at scale also depends on the attitudes of consumers.

“The key to expanding V2G is getting users motivated and willing to take part,” she says, adding that more work needs to be done to address Chinese consumers’ concerns on battery health and safety issues, including whether frequent discharges could cause battery degradation.

According to the 2023 policy, the lifespan of EV batteries still needs to improve so it can handle frequent use without wearing out too quickly – a concern long noted by the industry.

In April 2024, Hui Dong, chief technical expert at the China Electric Power Research Institute, a research institute affiliated to the State Grid Corporation of China, stated that, in terms of lifespan, chemical energy storage systems, represented by lithium-ion batteries, are still “underperforming”.

The post Q&A: How ‘vehicle-to-grid’ technology could boost China’s electricity system appeared first on Carbon Brief.

Q&A: How ‘vehicle-to-grid’ technology could boost China’s electricity system

Continue Reading

Climate Change

EU carbon credits could supercharge world’s clean cooking push, France says

Published

on

The European Union’s plan to use international carbon credits to help meet its 2040 climate target could provide a “super solution” to accelerate the rollout of cleaner cooking technologies across the Global South, according to France’s top climate envoy .

With the bloc set to become a “big investor” in carbon credits as a result of its new climate law, efforts to replace polluting cooking stoves with cleaner alternatives could be scaled up, French climate ambassador Benoît Faraco told a summit on clean cooking hosted by the International Energy Agency (IEA).

Faraco said he had discussed that possibility with French fossil fuel giant TotalEnergies, which is involved in clean cooking offsetting programmes in Africa and has major plans to expand the adoption of liquefied petroleum gas (LPG) for use in cookstoves in developing countries.

Controversial carbon credits

Starting in 2036, the EU will be allowed to count “high-quality” international carbon credits generated by partner countries under Article 6 of the Paris Agreement towards up to 5% of the emissions reductions required to meet its 2040 target of cutting greenhouse gas emissions by 90%. Several climate experts and activists accused the bloc of watering down its commitments by including carbon credits in its climate target for the first time.

The amended climate law adopted in early February says the credits will need to follow “robust safeguards” and “ensure environmental integrity”. The European Commission and its member states have yet to determine which types of credits would qualify or how they would be sourced.

But a French diplomatic source, speaking on condition of anonymity, told Climate Home News that clean cooking should be considered among the sectors to be supported through Article 6 funding, adding that France was willing to engage with its partners on the topic.

    Clean cooking credits have regularly faced significant criticism from researchers and campaigners who argue that climate benefits are often exaggerated and weak monitoring can undermine claims of real emission reductions.

    “There is a significant risk in trading credits that have repeatedly failed to deliver on their promises, which has been a particular issue with cookstove projects,” said Benja Faecks, an expert at Brussels-based NGO Carbon Market Watch (CMW), adding that it was “far too early” for France to make recommendations on specific credit types.

    The French diplomatic source told Climate Home News that France will continue to advocate for the EU to forge partnerships with countries to develop a high-quality carbon credits supply chain.

    Total’s cooking gas expansion

    Speaking at the IEA summit held in Paris late last month, Faraco said he had discussed the use of carbon credits to fund clean cooking initiatives with TotalEnergies a few days earlier when he joined the French multinational on a visit to deliver LPG cooking units.

    TotalEnergies says it is investing over $400 million in LPG infrastructure – including canister storage and filling stations – to give 100 million people in Africa and India access to cleaner cooking alternatives to wood and charcoal.

    Jayanty Pathinera, 78, cooks rice with firewood in the fuel shortage at her house at a residential area for low-income, amid the country’s economic crisis, in Colombo, Sri Lanka, July 31, 2022. REUTERS/Kim Kyung-Hoon

    Jayanty Pathinera, 78, cooks rice with firewood in the fuel shortage at her house at a residential area for low-income, amid the country’s economic crisis, in Colombo, Sri Lanka, July 31, 2022. REUTERS/Kim Kyung-Hoon

    But while the company promotes the programme as a win for public health and the climate, it also stands to benefit commercially: the rollout would create a vast new market to absorb the growing volumes of oil and gas the company wants to produce across Africa.

    In Uganda, where TotalEnergies is leading the development of a major and controversial oil drilling project on the shores of Lake Albert, the French firm says it also provides “affordable” LPG cooking solutions to local communities aiming to avoid “critical deforestation”.

    Campaigners have said that gas is not clean nor affordable and pushing its adoption for cooking would lock vulnerable communities into a fossil fuel system. Faecks from CMW said the distribution of LPG cookstoves “very much suits Total’s interests”.

    TotalEnergies did not immediately respond to a request for comment.

    Major carbon market player

    The French company has long been involved in carbon markets and, in 2025, spent $73 million to buy carbon credits used to offset, on paper, the greenhouse gas emissions caused by its oil and gas operations.

    Last year, it announced that it had partnered with a carbon credit developer to distribute 200,000 cookstoves to households in Rwanda that it said would prevent the emission of more than 2.5 million tons of carbon dioxide over the next 10 years. TotalEnergies will acquire the credits produced by the project and use them from 2030 to offset some of its direct emissions.

    “Clean cooking contributes to long-term social, economic and human development in a more sustainable way,” Arnaud Le Foll, senior vice-president new business and carbon neutrality at TotalEnergies, said at the time.

    The post EU carbon credits could supercharge world’s clean cooking push, France says appeared first on Climate Home News.

    EU carbon credits could supercharge world’s clean cooking push, France says

    Continue Reading

    Climate Change

    Explainer: Will AI data centres make or break the energy transition?

    Published

    on

    For tech entrepreneur Elon Musk, the answer to the rocketing energy needs of artificial intelligence (AI) data centres is to launch them into space, where they could tap limitless energy from the sun. But until that happens, the places on Earth where these number-crunching mega-hubs are located face big spikes in electricity demand to run them.

    In the US, this has sparked fears of higher energy prices for consumers. To allay those concerns, President Donald Trump will reportedly convene big tech firms this week to sign a pledge to provide or pay for the extra energy supplies they will need as their AI data centres expand.

    According to the International Energy Agency (IEA), data centres accounted for 1.5% of electricity demand worldwide in 2024 – a share set to rise to about 3% by 2030. Overall, data centre demand is expected to more than double to about 945 terawatt-hours (TWh) by then, which is slightly above the electricity consumption of Japan today.

    AI data centres, where AI models are trained and deployed, put far more strain on power supplies than traditional data centres, which each use between 10 and 25 megawatts (MW). In comparison, demand from a “hyperscale” AI centre can exceed 100 MW at any given time, which if running at full capacity could consume as much electricity in a year as 100,000 households.

    Data-centre electricity consumption in household electricity consumption equivalents (million households), 2024

    (Source: IEA, Paris, 2025, Licence: CC by 4.0)

    (Source: IEA, Paris, 2025, Licence: CC by 4.0)

    We look at where this power might come from and whether, as some warn, AI is going to blow the world’s efforts to transition away from fossil fuels out of the water.

    Why does AI need so much electricity?

    AI data centres differ in how they use electric power. In a conventional data centre, data requests from businesses, individuals and other users come in a randomised way, translating into a steady load level on the servers, with relatively little fluctuation in demand.

    But in an AI data centre, processors need to go through training or learning periods, using so-called “graphical processing units”. These are synchronised, being started up and switched off at the same time. This translates into “power bursts”, which last just a few seconds, but happen very frequently and concurrently, according to Gerhard Salge, chief technology officer at Hitachi Energy.

    “That is a different challenge than just providing the power and the energy for the conventional data centres,” he told journalists at the International Renewable Energy Agency assembly in Abu Dhabi earlier this year.

    Here, officials and business executives discussed how to meet those demand peaks, noting they cannot be dealt with just by installing huge batteries as those would wear out quickly.

    Martin Pibworth, chief executive of SSE, a Scotland-based energy firm, said AI-led demand will put pressure on the power system, but “the problem we all have is no one really knows the pace and trajectory of that demand lift”. In the UK, the government’s Clean Power Plan will be needed to make sure electricity operators can meet demand from AI and other data centres as more come online, he added.

      In the US, meanwhile, the Trump administration is eager to ensure that communities that are home to data centres, as well as the wider public, do not turn against the industry due to its perceived unfairly high use of energy and water.

      Ahead of a meeting scheduled on March 4, where US tech titans are due to sign a pledge on powering their own data centres, White House spokesperson Taylor Rogers told CNBC: “Under this bold initiative, these massive companies will build, bring, or buy their own power supply for new AI data centres, ensuring that Americans’ electricity bills will not increase as demand grows.”

      Will electricity for data centres and AI come from clean or dirty sources of energy?

      The answer to this question is key to how countries tackle climate change, as it will affect their energy mix, how electricity is produced and distributed, and therefore the trajectory of their greenhouse gas emissions. Decisions made by governments and businesses will shape how the AI industry powers the technology on which it relies.

      Under pro-fossil fuel Trump, the US has walked away from policy support for clean energy, meaning data centre operators can choose their energy sources freely. In January, data from Global Energy Monitor (GEM) showed the US now has the most gas-fired power capacity in development, surpassing China and accounting for nearly a quarter of the world’s total.

      More than one-third of this capacity is set to directly power data centres on-site, in hotspots like Texas, and many more grid-connected gas-fired projects are planned to meet an expected increase in energy demand from AI, GEM said.

      On the other hand, some tech companies – especially multinationals – have set goals to cut their emissions to net zero, and so are choosing to power their data centres with renewables, including in the US.

      For example, French energy giant TotalEnergies recently signed two long-term Power Purchase Agreements (PPA) to deliver 1 gigawatt (GW) of solar capacity for Google’s data centres in Texas. This followed two other PPAs with Google for 1.2 GW secured by Clearway, a California-based renewables company 50%-owned by TotalEnergies.

      Sources of global electricity generation for data centres – base case, 2020-2035

      (Source: IEA, Paris, Licence: CC by 4.0)

      (Source: IEA, Paris, Licence: CC by 4.0)

      Some countries are also moving to ensure the power needed for AI and the data centre industry is produced using clean energy.

      In Ireland, an effective ban on new data centre connections was lifted in December, provided at least 80% of the centres’ annual energy demand is met by new renewable electricity sources. The government also plans to build Green Energy Parks, where data centres can be located alongside renewables plants to avoid straining the national grid.

      Salge of Hitachi Energy said that with big investors wanting to drive investment in AI data-crunching so fast, “there is no other power generation technology than variable renewables which you can build in such a timeline” of two to three years. “Anything else will be in the 2030s and later,” he added.

      Some governments – such as Sweden’s centre-right coalition have proposed nuclear as a clean energy solution for AI data centres, saying they could fuel a “renaissance”. But building nuclear power plants requires massive investment and long timelines, while new small-scale modular reactors are not yet commercially available.

      How are power systems and regulators coping so far?

      In a February report forecasting electricity demand out to 2030, the IEA said AI and data centres are contributing to generation growth in advanced economies, which is now accelerating again after 15 years of stagnation. However, it flagged bottlenecks in connecting new data centres, because grids are not being built or improved fast enough to keep up with rising power demand, forcing big customers to wait.

      The report noted that at least 150 GW of queued data centre projects are estimated to be in the advanced stages, while one-fifth of the global data centre build-out is at risk of delay due to grid congestion.

      Comment: Using energy-hungry AI to detect climate tipping points is a paradox

      Planning, permitting and completing new grid infrastructure can take five to 15 years, whereas data centres need one to three years. Prices for key grid components have also nearly doubled over the past five years, the IEA noted.

      The European Commission, meanwhile, aims to support those operators that can save on energy use. It plans to adopt a “Data Centre Energy Efficiency Package” in April that will contain an assessment of data submitted under a reporting scheme, introduce a rating scheme for data centres in the EU, and start work on minimum performance standards.

      Can AI help to resolve the issue?

      Experts say it’s important to look at both sides of the coin, pointing to ways in which AI can contribute to more effective power grid management and integration of renewables into national power supplies.

      According to new analysis by energy think-tank Ember, AI applications such as short-term renewables forecasting, predictive maintenance, and real-time monitoring and adjustment of transmission line capacity can deliver operational improvements in power systems.

      It estimates that AI could enable Southeast Asian nations, for example, to reduce their power sector costs by $45 billion-$67 billion through to 2035, depending on how much renewable energy they deploy. Potential AI-driven efficiency gains could cut emissions by 290 million to 386 million tonnes of CO2 over the next decade in ASEAN countries, it adds.

      “While power-hungry AI might initially stress the power systems, with various powerful applications it has the potential to significantly accelerate the energy transition and offset consumed energy rapidly,” Ember data analyst Lam Pham said in a statement.

      The post Explainer: Will AI data centres make or break the energy transition? appeared first on Climate Home News.

      Explainer: Will AI data centres make or break the energy transition?

      Continue Reading

      Climate Change

      New Investigation Reveals Forced Labour Tied to Tuna Sold in Australia

      Published

      on

      A new investigative report released by Greenpeace Southeast Asia, in collaboration with the Uniting Church in Australia, Synod of Victoria and Tasmania, has uncovered disturbing links between suspected forced labour in the Indonesian tuna fishing industry and seafood sold in Australia.

      The investigation analysed testimonies from 25 fishers working on 17 Indonesian tuna fishing vessels that supply the Australian market. These vessels supply five Indonesian processing companies, which in turn export to 18 Australian seafood companies, including major brands seen on our supermarket shelves.

      The findings raise urgent questions about human rights protections at sea and the integrity of seafood supply chains reaching Australian supermarket shelves.

      The crew of an Asian-flagged tuna longliner at work during a transshipment to a carrier mothership. © Greenpeace

      What the Investigation Found

      Fishers interviewed described experiencing multiple internationally recognised indicators of forced labour.

      Of the 11 forced labour indicators identified by the International Labour Organisation, the most frequently reported were:

      • Abuse of vulnerability (56%)
      • Debt bondage (56%)
      • Deception (40%)

      The report reveals a multi-layered recruitment network in Indonesia that channels vulnerable workers from rural areas into exploitative situations. Labour brokers, known locally as calo, collaborate with vessel administrators and manage recruitment. Fishers reported being lured with promises of high salaries and advance loans, only to be charged illegal and inflated fees for travel, training and documentation.

      Diver Joel Gonzaga of the the Philippine purse seiner ‘Vergene’ at work in the international waters of high seas. © Alex Hofford / Greenpeace

      The investigation also found that labour exploitation at sea is intertwined with environmental crime. Companies allegedly pushed vessels and fishers to engage in illegal, unreported and unregulated fishing practices, including shark finning and the deployment of illegal fish aggregating devices.

      75 kilograms of shark fins from at least 42 sharks found in the freezer of the Shuen De Ching No.888. Under Taiwanese law and Pacific fishing rules, shark fins may not exceed 5% of the weight of the shark catch, and with only three shark carcasses reported in the log book, the vessel was in clear violation of both. © Paul Hilton / Greenpeace

      The link between labour abuse and environmental destruction is not accidental. It reflects an extractive system that externalises both human and ecological costs to sustain profit margins.

      Industrial fishing not only exploits vulnerable workers and undermines human rights, it also strips life from our oceans, degrading fragile ecosystems and pushing marine wildlife toward collapse.

      What Needs to Happen Now

      The report calls for urgent action from both governments and industry.

      The Indonesian Government must:

      • Enforce decent and effective work at sea policies aligned with international standards.
      • Ensure ethical recruitment practices.
      • Guarantee fair wages and protections for Indonesian fishers.

      The Australian Government must:

      • Prohibit seafood products linked to labour exploitation and forced labour from entering Australian markets.

      Seafood companies in both countries must:

      • Conduct robust human rights and environmental due diligence across their supply chains.

      These are not abstract policy fixes. They are necessary steps to prevent modern slavery at sea and to stop environmental crime from being embedded in global seafood trade.

      Environmental Justice and Ocean Protection Go Hand in Hand

      This investigation highlights something fundamental. Human rights and ocean protection are inseparable.

      Environmental justice means the fair treatment and meaningful involvement of everyone in creating a healthy environment. When workers are exploited and forced into dangerous conditions, environmental laws are often ignored too. Abuse at sea and ocean destruction are two sides of the same industrial system.

      Destructive industrial fishing methods such as longlining and bottom trawling continue to pillage and industrialise the ocean. They kill wildlife, destroy fragile habitats and undermine the resilience of marine ecosystems.

      If we want a thriving ocean, we must protect both the people who work on them and the ecosystems themselves.

      Why This Matters for Australia and the Global Ocean Treaty

      The Australian Government is on the cusp of ratifying the Global Ocean Treaty, the legal instrument allowing governments to create high seas ocean sanctuaries free from industrial fishing. Once Australia has ratified, it has the critical tool it needs to protect the ocean and safeguard beautiful and endangered species like whales, dolphins and sharks from destructive fishing methods in the high seas.

      A silky shark and other marine life. © Paul Hilton / Greenpeace

      Vast, robust ocean sanctuaries are a crucial solution to the ocean crisis. These high seas sanctuaries will provide a blue haven where wildlife can rest, recover and thrive. Greenpeace Australia Pacific is calling on the Australian government to champion multiple high sea ocean sanctuaries in our region, starting with a first generation ocean sanctuary in the South Tasman Sea between Australia and Aotearoa, free from industrial fishing, whaling and the threat of deep sea mining.

      As this investigation shows, the stakes are not only environmental, they are deeply human.

      Australia has an opportunity to lead by cleaning up seafood supply chains at home and by championing ambitious ocean protection globally by creating fully protected ocean sanctuaries. Protecting workers’ rights and protecting ocean wildlife must happen together.

      https://www.greenpeace.org.au/article/new-investigation-reveals-forced-labour-tied-to-tuna-sold-in-australia/

      Continue Reading

      Trending

      Copyright © 2022 BreakingClimateChange.com